The Seven Samurai: Japan’s Answer to the Magnificent Seven

While the US’ Magnificent Seven has been dominating headlines in recent years, Japan is staging its own blockbuster comeback. 这 Seven Samurai, consisting of seven of the country’s largest and most dynamic companies, are powering the Nikkei 225’s surge to record highs in 2025, offering investors both growth and diversification.

But why is Japan back in the spotlight? Several tailwinds are converging to create a once-in-a-generation opportunity:

• Record Market Highs – In August 2025, the Nikkei 225 smashed the 43,000-point barrier for the first time in history. The rally reflects renewed investor confidence, driven by strong earnings, governance reform, and global liquidity.
• ETF Inflows Surge – As of end-June 2025, assets under management in Japan’s ETF industry reached a record US $648.38 billion, marking a 13.2% year-to-date increase.
• Corporate Reform – Japan’s Prime-listed companies have broadly adopted shareholder-friendly reforms – dividends and buybacks are increasingly common, supporting better investor sentiment.
• Global Endorsements – At Berkshire Hathaway’s 2025 AGM, Warren Buffett reaffirmed his bullish stance on Japan, citing increased stakes in five major trading houses. Global funds followed suit, with record foreign inflows of ¥2.8 trillion in early April, underscoring Japan’s appeal as a stable, undervalued market.
• Macro Tailwinds — 这 yen’s weakness has generally boosted exporters’ overseas earnings in yen terms. Meanwhile, the Bank of Japan’s exit from negative rates marks financial normalisation, improving bank margins and supporting insurers’ yields. 

Meet the Seven Samurai – seven giants across tech, finance, autos, retail, and entertainment that embody Japan’s growth story:

1) Mitsubishi Corporation (TSE: 8058)

Japan’s largest trading house, and a Warren Buffett favorite, stunned markets with a ¥1 trillion buyback announced in April 2025, targeting 17% of outstanding shares. This followed a ¥500 billion repurchase in February 2024. With diversified exposure across energy, commodities, and infrastructure, Mitsubishi’s stock rose 5.95% YoY, reflecting investor confidence in its capital discipline and global reach.

2) Toyota Motor Corporation (TSE: 7203)

The world’s #1 automaker by units sold continues to dominate. For FY2025 (Ending March 2025), Toyota posted ¥48.04 trillion in revenue (+6.5% YoY) and in terms of sales volume, the carmaker sold a total of 10.274 million vehicles globally with their electric vehicles driving the trend. The stock is up 9.94% YoY, cementing Toyota’s role as a pillar of Japan’s industrial strength.

3) Nintendo Co., Ltd. (TSE: 7974)

Nintendo’s creative momentum shows no signs of slowing. The June 2025 debut of the Switch 2 ignited a blockbuster run, propelling both hardware and software sales. As of 19 August 2025, Nintendo holds ¥2.06 trillion in cash, remains debt-free, and has delivered a 54.09% YTD return， 和 76.98% YoY. It’s a fortress of innovation and financial discipline.

4) Fast Retailing Co., Ltd. (TSE: 9983)

Fast Retailing powers ahead globally, with UNIQLO posting standout gains across Southeast Asia, North America, and Europe. For FY2025 (ending August 2025), the group guides for ¥3.4 trillion in revenue 和 ¥545 billion in operating profit – up 11.30% YoY. The stock has surged 15.59% YoY, reflecting investor confidence in its international momentum and disciplined execution.

5) Sony Group Corporation (TSE: 6758)

Sony thrives at the intersection of tech and entertainment. Its Games & Network Services division, led by PlayStation 5 and exclusive IPs, drove robust earnings. For FY2025 (Ending June 2025), Sony posted ¥1.14 trillion in net income, with a 57.52% stock gain YoY. With diversified strength across semiconductors, music, film, and insurance, Sony remains a global media-tech powerhouse.

6) Mitsubishi UFJ Financial Group, Inc. (TSE: 8306)

Japan’s largest bank is finally benefiting from rising rates. For FY2025 (ended March 2025), MUFG posted ¥1.26 trillion in net income, up 230% YoY, with a 23.1% profit margin. Its Southeast Asia expansion and digital transformation are unlocking new growth avenues. The stock climbed 45.93% YoY as of August 12, reflecting renewed investor optimism.

7) Tokyo Electron Limited (TSE: 8035)

Tokyo Electron, Japan’s top semiconductor equipment maker, plays a critical role in producing advanced chips used in AI servers and high-performance computing. While the stock surged in early 2024 on demand for advanced nodes and strategic investments, it has since pulled back, posting a – 24.36% YoY return as of August 2025. Still, Tokyo Electron’s upgraded profit forecast and strong ROCE underscore its long-term value in the AI hardware cycle.

*Stock performance as of 19 August 2025 based on data from Yahoo Finance.

As an investor, you can either invest in the Seven Samurai individually or take a broader approach with ETFs tracking the Nikkei 225 or TOPIX, offering a one-click access to Japan’s biggest and most liquid names. Popularly traded ETFs include:

1) iShares Core Nikkei 225 ETF (TSE: 1329)

This BlackRock-managed ETF tracks Japan’s iconic Nikkei 225, giving investors exposure to 225 of the country’s largest and most liquid stocks, including all Seven Samurai. With a +16.46% return YoY 和 ultra-low fee of about 0.05%, it’s a cost-efficient way to ride Japan’s large-cap momentum.

2) NEXT FUNDS TOPIX ETF (TSE: 1306)

Managed by Nomura, this ETF tracks the TOPIX index, offering exposure to over 2,000 Prime-listed Japanese companies. Unlike the price-weighted Nikkei, it delivers market-cap-weighted access across sectors, capturing financials, mid-caps, and governance reform beneficiaries. With a return of +18.05% YoY and a relatively low fee of 0.09%, it is a strong vehicle for investors seeking diversified participation in Japan’s equity resurgence.

从 15 August to 31 December 2025, Phillip Nova is making it even more rewarding with a special 0.08% commission and no minimum fee for all TSE-listed stocks and ETFs traded online — the lowest in Singapore.

Whether you prefer the precision of hand-picking the Samurai or the diversification of Nikkei and TOPIX ETFs, now is the time to ride Japan’s resurgence with Phillip Nova.

Trade Japan Stocks and ETFs at only 0.08% (with no minimum commission) on Phillip Nova 2.0 now! Click here to open an account now!